Discovering Ukraine's True Wealth: Unveiling Its Hidden Gems
"Let's talk about rare earths and more," suggests President Trump regarding a prospective agreement with Ukraine. But exactly which materials are we talking about, where are they situated, and how does Trump gain access to them?
President Volodymyr Zelensky is set to visit Washington on Friday, largely symbolic, hauling no actual billions. However, Trump and Zelensky plan to ink a mineral resources agreement.
Speaking on the anticipated accord, Trump remarked, "It could be anything, but it's about rare earths and other things." Zelensky had hinted at utilizing raw materials as a tool for securing Western aid prior to the US election.
Ukraine's Ministry of Natural Resources and the Institute of Geology boast the country's bountiful resources. According to an investment catalog, titled "Investment Opportunities in Mining," Ukraine has the potential to transform into "a major supplier of critical raw materials for the global industry."
The Building Blocks for Modern Tech
Some media outlets have questioned if critical raw materials are as abundant in Ukraine as Trump suggests. Mining engineer Carsten Drebenstedt asserts, "One must distinguish between potential and actual extraction." The professor from TU Bergakademie Freiberg acknowledges Ukraine's substantial reserves given its geological structure and size.
As per a Ukrainian publication, 22 of the 34 minerals classified as critical by the European Union are found in Ukraine. Graphite, lithium, titanium, beryllium, and uranium are given particular emphasis; they are integral components in smartphone batteries, aircraft, bridge infrastructure, and X-ray examinations.
Ukraine's richness in rare earths is noteworthy. Tantalum and niobium, for instance, are typically mined as by-products during titanium extraction. Tantalum is a vital component in electronics, specifically tantalum capacitors, which offer exceptional efficiency, durability, and resistance to semiconductors, making them suitable for phones, cars, and even rockets. However, commercial exploitation of Ukrainian deposits remains pending.
Europe's Trove of Lithium
Compared to its potential, scarcely any mining has occurred in Ukraine. Drebenstedt attributes this to the challenges associated with extracting these resources. During the Soviet era, demand for rare earths was not significant; however, ongoing demand for raw materials like lithium, cobalt, nickel, and graphite has surged. Around 2010, there was a global race for access to these elements. At that time, Ukraine did not play a substantial role.
The country has pursued investors to fund the costly extraction process for quite some time. Numerous mining licenses are listed on the Ukrainian Institute of Geology's website, with some already auctioned off or ready for bidding, such as a license for the titanium deposits in Kharkiv.
Ukraine is not short on convincing promises. A Ukrainian-French study suggests that Ukraine holds some of Europe's most substantial titanium, manganese, and lithium reserves, although the dissenting turmoil has stalled their exploitation. According to Isabel Al-Dhahir of economic analysis giant GlobalData, Ukraine's lithium reserves could have significantly impacted the EU's strategy, but numerous companies postponed their exploration plans following Russia's invasion.
The Majority in Russian Control
Ukraine's abundant natural resources appear to have ignited interest. Commentators suspect that Russia's invasion could also have been driven by the prospect of these resources. Now, the US government has also waded into the waters: A potential deal between Trump and Zelensky could have substantial implications for Ukraine's resource policy.
The critical issue here is who controls the regions containing these resources. Most of Ukraine's rare earths are located in Russian-controlled territory, Peter Buchholz, head of the German Federal Institute for Geosciences and Natural Resources, informs ntv.de. Therefore, it is highly likely that the US is primarily interested in critical raw materials in general.
Ukraine can be categorized into four major geological regions: the Ukrainian Shield, Dnieper Lowland, Podolian Plate, and Carpathian Belt. The Ukrainian Shield, encompassing central and southern Ukraine, holds iron, titanium, uranium, lithium, graphite, and several rare earths. Russia partially occupies the southwestern part of the shield, the Donbass. The Dnieper Lowland in the northeast of the country houses oil, gas, coal, salt, copper, and mercury. The Podolian Plate and Carpathian Belt in the west and south contain coal, sulfur, phosphates, polymetals, mercury, and zeolites. In the Black Sea Depression in southern Ukraine, manganese, coal, and bauxite can be found.
A Rapid Departure or a Long-term Commitment?
To extract such substances, three essential components are required: money, mining expertise, and a permit. Ukraine lacks financial backing and know-how, according to Drebenstedt's assessment. It will take time to see any results, he suggests, adding that "this is not a quick business."
If Trump hoped to witness the benefits of this arrangement sooner rather than later, he may have an extended wait. Buchholz calls the US-Ukraine resource deal "short-term, a typical Trump show." But over the long term, this deal could serve as a cornerstone for Ukraine's economic development and establish the potential for lucrative resource deals with both Europe and the US.
Drebenstedt finds it difficult to comprehend why Trump would focus solely on mining rare earths in Ukraine. These resources are not scarce, only tricky to extract. Why it should be easier to do so in a warzone remains unclear to Drebenstedt.
Enrichment Data:
Ukraine is rich in various critical minerals, including rare earth elements and other strategic materials. These resources have attracted significant interest from President Trump and Ukrainian President Volodymyr Zelensky for potential agreements. Here are the specific minerals and their locations:
Rare Earth Elements and Other Strategic Minerals
- Lithium: Ukraine has substantial lithium reserves, estimated around 500,000 metric tons. Deposits are located in central, eastern, and southern Ukraine, including Shevchenkivske (Donetsk) and Kruta Balka (Zaporizhzhia), though some areas are under conflict.[1][2][3]
- Rare Earth Elements: These elemental compounds, like lanthanum, cerium, neodymium, erbium, and yttrium, are integral to advanced technologies and defense production. Though precise data on reserves is classified, Ukraine has substantial reserves of essential elements like neodymium, an essential component of permanent magnets and electric vehicles.
- Scandium: Ukraine possesses scandium reserves, used in aerospace and other high-tech applications.[2][3]
- Titanium: Ukraine holds some of Europe's most significant titanium reserves, mainly situated in central Ukraine intact.[2][4]
- Graphite: Representing approximately 20% of global resources, graphite deposits are found in Ukraine's center and west, indispensable for electric vehicle batteries and nuclear reactors.
- Other Minerals: Ukraine has vast reserves of other critical minerals like beryllium, gallium, manganese, uranium, and zirconium.[2][4]
Locations of Mineral Resources
- Donetsk and Zaporizhzhia: These regions under conflict contain significant lithium deposits[1][3].
- Central Ukraine: Titanium's largest reserves in Europe can be found here.[2]
- Kyrovohrad Region: Still under Ukrainian control, it houses substantial lithium deposits[2].
- Dnipropetrovsk Region: This area has numerous mineral resources, including rare earth metals and graphite.[4]
- Western Ukraine: Graphite deposits can be found here.[3]
These resources are crucial for clean energy technology, defense production, and advanced manufacturing, making them a primary topic for discussions between Trump and Zelensky about potential agreements and strategic partnerships.[2][4]
- The proposed mineral resources agreement between President Trump and President Zelensky of Ukraine could potentially grant Trump access to critical raw materials, such as rare earth elements and lithium, which are key components in modern technology and defense production.
- Ukraine, being rich in strategic minerals, is described by GlobalData as having the potential to transform into a significant supplier of critical raw materials for the global industry, particularly in the areas of titanium, manganese, and lithium.
- According to report, a large portion of Ukraine's rare earth elements, including tantalum and niobium, are located in Russian-controlled territories, which could influence the US's interest in these resources, making it likely that the US is primarily interested in critical raw materials in general.
